JK Corcoran

JK Corcoran
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  • Overdraft Fee Limits Are Now Inevitable  [View article]
    Banks should not have to defend how they process payments. Customers should stop writing checks when they are out of money. Banks did exhaustive consumer surveys and studies prior to offering overdraft protection. I remember one study that showed customers overwhelmingly wanted automatic overdraft protection and were willing to pay a fee to have this service. The bottom line is that if it is not profitable - and especially if it's punitive - banks will no longer pay any item that does not have a compensating balance in the account the check is drawn on and will probably start closing those abusive accounts. Blaming the banks for customer abuse is reprehensible.
    Sep 22, 2009. 10:28 AM | Likes Like |Link to Comment
  • Bank Overdraft Brouhaha: Why Can't People Take Responsibility for Themselves?  [View article]
    Andy, I have worked in banking for over twenty years at many institutions including money center banks. Every bank I worked at required that deposits be processed and posted before debit to the customer account. Any bank that does not follow this policy would quickly find that their customers have gone to the savvy competitor who has pointed out the flawed policy to the customer. Competition solves this issue.

    As far as blaming banks for this mess, please take a look at what has been required of banks ever since Jimmy Carter instituted the CRA Act. This act states that banks are required to lend a certain percentage of their portfolio to people who cannot pay the loans back. Barney Frank and friends raised the CRA requirement at Fannie and Freddie to 50% of the portfolio just prior to this meltdown. The banks and other lenders scrambled to find solutions to this huge liability...after all, the same regulators can close down a bank that they feel has too much risk in their portfolio. So, the big brokerages addressed this new demand in the market with securitization of these loans. The politicians loved it, the stock market loved it, demand increased to unsustainable levels, and we have ended up where we are now. Blaming a group that followed regulations and threats from our government may feel good, but it does nothing to solve the problem.




    On Jul 03 10:10 AM ANDY70139 wrote:

    > THE DAILY PRACTICE OF ALWAYS PROCESSING CHECKS WRITTEN BEFORE PROCESSING
    > DAILY CUSTOMER BANK DEPOSIT WAS INSTITUTED FOR ONE REASON AND ONE
    > REASON ONLY -----OVERDRAFT INCOME FEES FOR THE BANK.
    > IT MAY BE LEGAL BUT CERTAINLY AN UNETHICAL BUSINESS PRACTICE PROTECTED
    > BY CONGRESS AND THE FED.
    > WHO CONTRIBUTES MORE TO THEIR SUCESS?
    Jul 3, 2009. 10:46 AM | 3 Likes Like |Link to Comment
  • Why Is California in Economic Trouble?  [View article]
    You hit the nail on the head. I would add one more item to your list:

    8. The abdication of authority from the politicians to the public employees unions.


    On Jun 01 06:31 AM User 353732 wrote:

    > Let us count the ways.....
    > 1. The iron reign of political vampires who grow fat on the blood
    > of the unorganized and disorganized middle class, who slowly becomes
    > weaker and weaker
    > 2. contempt for the values, work, entrepreneurship and inspired risk
    > taking that once made California the envy and model of the world
    >
    > 3. the inabity to distinguish between manufactured reality and truth
    >
    > 4. infatuation with transient fads that confuse slogans with results
    >
    > 5. a pervasive sense of entitlements and an uncontrolled desire for
    > instant gratification
    > 6. a government that thinks(a) debt is a gift from kind strangers
    > rather than an obligation to investors and no comprehension that
    > if this obligation is repudiated the consequences will be cruel indeed
    >
    > and (b) that high taxes, capricious and mindless regulations and
    > hostility to small/medium businesses are the solution to all problems
    > at all times
    > 7. An ideology that routinely and reflexively encourages the growth
    > of the parasitic economy at the expense of the productive economy
    > and then blames the productive economy for not producing enough resources
    > to expand the parasitic economy even faster
    >
    > California is in trouble because of multiple, self inflicted and
    > repetitive wounds. The first step in a very long and slow recovery
    > is to stop hurting itself but that means replacing the corrupt and
    > entrenched elites. No external agent caused California's trouble
    > and no external agent can or will cure California of its several
    > pathologies.
    Jun 1, 2009. 10:17 AM | 5 Likes Like |Link to Comment
  • I Left My Fat Paycheck in San Francisco  [View article]
    You know Mad, one might think you are attempting to boost your post numbers by resubmitting the same comment to various and sundry articles. I wouldn't have a problem with this other than the fact that your statement is full of falsehoods. None of your "facts" are accurate. This is not a voting problem, it is a problem caused by politicians who gave the unions a stranglehold on the state's tax revenues. A word to the Federal Government; take note! You are doing the same thing with the Federal revenues (and GM too!)!


    On May 31 12:13 PM Mad Hedge Fund Trader wrote:

    > Things are worse than that. California voters resoundingly rejected
    > all five out of six budgetary measures by an overwhelming two to
    > one margin, setting the stage for a new financial crisis. Trashed
    > at the polls were plans to create a rainy day fund, improve education,
    > borrow from the state lottery, and pay for children’s services and
    > mental health. Only prop 1F, freezing legislator pay raises during
    > deficit years, passed. The state now has to immediately cut spending
    > by $21 billion by laying off 10,000 teachers, 5,000 other state workers,
    > and shortening the school year by seven days. It will raid every
    > city and county government for additional cash. The state will also
    > release 20,000 non violent state prisoners and suspend maintenance
    > and construction on thousands of projects. My home town high school
    > is closing their sports and music programs. If the state’s latest
    > round of $6.5 billion in bond issues did not carry federal government
    > guarantees, they would have been wiped out in the market. No doubt
    > our well tanned, Austrian immigrant governor, Arnold Schwarzenegger,
    > who was in Washington DC for a CAFE photo op with Obama, will be
    > sent back to the gym to pump iron sooner than he thinks.
    May 31, 2009. 02:17 PM | 5 Likes Like |Link to Comment
  • Who Do You Believe: The FDIC or Hard Facts?  [View article]
    I closed a loan for a bank that was subsequently taken over by the FDIC. The borrower called me to let me know he would not be able to make payments for a few months due to various factors. I suggested he work with the FDIC receiver to either get forebearance for the three months, or renegotiate and re-amortize the note (both allowed under SBA rules). Instead, the receiver told my customer that he should not worry about making any payments. He would not be putting the note past due, on non-accrual, nor would he default the note even though it is currently over 90 days past due. He told my customer they are packaging up the loans and selling them so he doesn't want to even put the loan on watch status. This appears to me that the FDIC receiver is attempting to not disclose non-accrual loans to potential investors. Boy, my confidence is raised by this...
    May 31, 2009. 02:08 PM | 8 Likes Like |Link to Comment
  • Debit Cards, State-Provided Charge Cards: More Speculation  [View article]
    Although the supply chain model versus USPS shows private companies can effectively compete against government "businesses", I think the addition of banking services to the treasury would put undue additional pressure on the banking industry. Already there are difficulties with competing with "not for profit" credit unions who have been moving into commercial banking over the past ten years and competing for business with the advantages of not needing to show a profit as well as preferred tax status. You did touch on the slippery slope that a treasury credit/debit card would start us down the slope by mentioning treasury demand accounts. I think even the credit unions would find issue with the loss of their competitive edge by government competition. We will see with the auto industry how this would shake out as legislation and mandates for certain types of government approved vehicles be built, rather than what the market wants.
    May 26, 2009. 11:12 AM | 1 Like Like |Link to Comment
  • California's Crisis Omen of the Nation's Future Reality  [View article]
    This is true...but that same guy will tell you he would rather be free than tied up with rules in return for a roof. A constitutional convention would give us the opportunity to reverse some of the required funding programs that eat so much of the budget. An example I have mentioned before is the required annual high percentage increases to public employee pensions and education regardless of the economy or proof the money is not improving the program (we are amoung the worst in education quality to dollar spent in the country). I am not a runner, I do not abandon friends because things are going to heck in a handbasket. So, I guess I'll stick around and try to help.


    On May 25 09:08 PM henarl wrote:

    > It's pretty depressing to think that the whole country is as brain
    > dead as California, but it may turn out to be true.
    > JK: Autonomy doesn't have much value when you're stone broke - ask
    > that autonomous homeless guy living under the bridge.
    May 25, 2009. 10:50 PM | 1 Like Like |Link to Comment
  • California's Crisis Omen of the Nation's Future Reality  [View article]
    I find it astonishing that you continue to recycle this trash. I looked on the governor's website for his ideas on relieving the deficit, and nowhere does he say anything about what you are continuing to repeat! The California government is handcuffed by the legislation providing high percentage pension increases annually for government workers, departments developed to pander to specific interests, and legislators who spend as a re-election strategy. These are solvable with a constitutional convention with participation from the majority of fiscal conservatives in the state. Most of us do not want a government bailout especially after TARP which started with few rules which were changed retroactively into what appears to be direct oversight into all areas of the company including personnel. Local interference from the Federal Government portends the loss of states' historical autonomy from the Feds.


    On May 24 11:39 PM Mad Hedge Fund Trader wrote:

    > Unfortunately the trend is a death spiral. California voters resoundingly
    > rejected all five out of six budgetary measures by an overwhelming
    > two to one margin, setting the stage for a new financial crisis.
    > Trashed at the polls were plans to create a rainy day fund, improve
    > education, borrow from the state lottery, and pay for children’s
    > services and mental health. Only prop 1F, freezing legislator pay
    > raises during deficit years, passed. The state now has to immediately
    > cut spending by $21 billion by laying off 10,000 teachers, 5,000
    > other state workers, and shortening the school year by seven days.
    > It will raid every city and county government for additional cash.
    > The state will also release 20,000 non violent state prisoners and
    > suspend maintenance and construction on thousands of projects. My
    > home town high school is closing their sports and music programs.
    > If the state’s latest round of $6.5 billion in bond issues did not
    > carry federal government guarantees, they would have been wiped out
    > in the market. No doubt our well tanned, Austrian immigrant governor,
    > Arnold Schwarzenegger, who was in Washington DC for a CAFE photo
    > op with Obama, will be sent back to the gym to pump iron sooner than
    > he thinks.
    May 25, 2009. 11:11 AM | 3 Likes Like |Link to Comment
  • Is California in Need of a Bailout?  [View article]
    I am not sure why you keep putting the exact same comment into every California article you find in here. The reality is that they cannot cut any SEIU employees without closing entire departments as mandated by the legislature. This leaves the other unions in the cold, so teachers, fire and police MAY suffer. There is not a plan in place to cut any of them. Swartzenegger's most recent trial balloon (no, no plan even now!) is to cut all state social services such as welfare, medi-cal, etc. to zero. If you have evidence to what you are asserting, please share it rather than pasting up the same stuff over and over.


    On May 24 10:15 AM Mad Hedge Fund Trader wrote:

    > From where? California voters resoundingly rejected all five out
    > of six budgetary measures by an overwhelming two to one margin, setting
    > the stage for a new financial crisis. Trashed at the polls were plans
    > to create a rainy day fund, improve education, borrow from the state
    > lottery, and pay for children’s services and mental health. Only
    > prop 1F, freezing legislator pay raises during deficit years, passed.
    > The state now has to immediately cut spending by $21 billion by laying
    > off 10,000 teachers, 5,000 other state workers, and shortening the
    > school year by seven days. It will raid every city and county government
    > for additional cash. The state will also release 20,000 non violent
    > state prisoners and suspend maintenance and construction on thousands
    > of projects. My home town high school is closing their sports and
    > music programs. If the state’s latest round of $6.5 billion in bond
    > issues did not carry federal government guarantees, they would have
    > been wiped out in the market. No doubt our well tanned, Austrian
    > immigrant governor, Arnold Schwarzenegger, who was in Washington
    > DC for a CAFE photo op with Obama, will be sent back to the gym to
    > pump iron sooner than he thinks.
    May 24, 2009. 10:41 AM | 2 Likes Like |Link to Comment
  • California Not the Only State in Economic Crisis  [View article]
    Seceeding sounds great, but in order to get there, we need to change over our constitution, de-gerrymander our congressional districts, and get rid of the guys in office who spent us to this point. It would be an interesting new world with an independent California. Where would the US then rank in GDP...or any other measure?
    May 24, 2009. 09:06 AM | 4 Likes Like |Link to Comment
  • Is California in Need of a Bailout?  [View article]
    Governor Swartzenegger needs to call the SEIU's bluff and begin eliminating entire departments as that is the only way he can layoff SEIU employees. There are quite a few overlapping departments especially in water management and the environment. Eliminating these departments will lessen costs in several ways beyond just labor savings (not insignificant). This will also reduce the pension costs, the line item budget for the department, office space, etc. There are hundreds of departments the state supports also to very narrow purpose that need to go. This would also reduce the strain on many of the more necessary social services (not that there is no room for cuts there!).
    May 24, 2009. 09:00 AM | 3 Likes Like |Link to Comment
  • New Jersey's Pension Crisis: A Canary in the Coal Mine?  [View article]
    New Jersey union pensions sound like California. The San Francisco chapter of the SEIU has just turned down reductions in their pay through unpaid holidays because the City is not doing enough for the public workers. It doesn't matter that the city is on the verge of insolvency, nor does it matter that this is the most liberal city in America; all that matters is that the union members milk the last drop of blood from the husk of what was once a great city. I speak from experience having lived and worked in San Francisco for over 14 years. Another version of this debacle is playing out right now in the state capitol. Swartzenegger is not playing politics by saying police, fire and education will be cut. The legislature passed a law that does not allow layoffs of SEIU employees unless the entire department is closed. It may be a race between New Jersey and California who defaults first.
    May 23, 2009. 11:21 AM | 5 Likes Like |Link to Comment
  • What Were the People of California Thinking?  [View article]
    I agree that this is a strong possibility. We need to expose these attempts to the cold light of day and encourage the majority in the state who are fiscal conservatives to participate. I have consistently voted over the years, but have not done enough. I will be more involved in my community which is near Sacramento and respectfully request all of you who feel as I do to participate. Out of staters, happy to get your positive solution ideas as well. The time for ranting is over...action needs to begin.


    On May 21 04:00 PM Chancer wrote:

    > You Californians who are wishing for a CA state constitutional convention
    > to reform state government should be careful what you wish for.<br/>
    >
    > Liberal ("tax and spend") Democrats are attempting to hi-jack this
    > process by "packing" it with liberal delegates. They want to eliminate
    > the requirement of a 2/3 majority to increase taxes. They want to
    > make citizen propositions and initiatives on the ballot more difficult
    > to do. They may even try to eliminate Proposition 13, so they can
    > increase property taxes to astronomical levels. In short, they want
    > more power in Sacramento and fewer rights for citizens.
    May 21, 2009. 04:48 PM | 1 Like Like |Link to Comment
  • What Were the People of California Thinking?  [View article]
    Thanks! I was looking for reading material. I will pick them up when I take my little guy to the library next.


    On May 21 12:04 PM fireball wrote:

    > leftfield
    > ever read "unintended consequences"? it is entertaining and thought
    > provoking. try to find the pre-lawsuit version if you decide to give
    > it a try.
    > several posters on sa would probably find it interesting.
    > another interesting read is "the battle of athens". it is historical.
    > it is an account of a group of ww2 veterans who return home to find
    > a corrupt political machine and how they dealt with it. i knew some
    > of the participants. God bless'em. they're all gone now.
    May 21, 2009. 12:21 PM | 2 Likes Like |Link to Comment
  • The California Employment Lesson  [View article]
    I saw this response on the article "What Were The People Of California Thinking?" by Harry Long. My response is the same as well:
    I have lived, worked, and been taxed in California since 1978. I watched and voted against the geryymandering, self aggrandizing politicians in my district to little avail. Now Californians are waking up to the fact that the now sinecured politicians have to go. The only way open to us to end this problem and begin fixing the idiotic spending programs (guarantee of annual SEIU pension raises regardless of economy???) is to convene a constitutional convention and sweep most of these programs away while redistricting to engage local communities. Raising taxes on the few who are still working in this state is criminal in my mind.


    On May 21 08:00 AM Mad Hedge Fund Trader wrote:

    > And it's going to get higher. California voters resoundingly rejected
    > all five out of six budgetary measures by an overwhelming two to
    > one margin, setting the stage for a new financial crisis. Trashed
    > at the polls were plans to create a rainy day fund, improve education,
    > borrow from the state lottery, and pay for children’s services and
    > mental health. Only prop 1F, freezing legislator pay raises during
    > deficit years, passed. The state now has to immediately cut spending
    > by $21 billion by laying off 10,000 teachers, 5,000 other state workers,
    > and shortening the school year by seven days. It will raid every
    > city and county government for additional cash. The state will also
    > release 20,000 non violent state prisoners and suspend maintenance
    > and construction on thousands of projects. My home town high school
    > is closing their sports and music programs. If the state’s latest
    > round of $6.5 billion in bond issues did not carry federal government
    > guarantees, they would have been wiped out in the market. No doubt
    > our well tanned, Austrian immigrant governor, Arnold Schwarzenegger,
    > who was in Washington DC for a CAFE photo op with Obama, will be
    > sent back to the gym to pump iron sooner than he thinks.
    May 21, 2009. 11:28 AM | 1 Like Like |Link to Comment
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